Financial Advisor’s Greatest Asset

21 Oct 2018

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Financial Advisor’s Greatest Asset

Financial Advisors may argue the point, but it is their Book of Business that is every Financial Advisor’s Greatest Asset. What is a Book of Business? In its most basic form a Book of Business is your client list.

One of the 1st and most common mistakes a Financial Advisor can make is not segmenting their book into A, B, and C clients. Meaning your most valuable clients are your A’s, than down to your B’s and C’s. It sounds pretty simple, right? Well it is. While the definition is simple the value can be priceless if you do it right.

I work with Financial Advisors who have been in the business for 20-30 years and have 500 or more clients. If you are a financial advisor with a large Book of Business you know and I know that there is NO WAY you are properly servicing more than 100-150 of your clients.

Maximizing a Financial Advisor’s Greatest Asset

Most financial advisors are giving the majority of their time and attention to their A Clients. It is what they have to do. Let’s run some numbers. If 100 clients meet your definition of an A Client that means you are meeting 2 A clients each week for the entire year. Is that happening? Do you have a structured meeting plan in place to meet with your Top 100 each year? A lot of advisors if they are honest with themselves would say NO.

Let’s assume you are meeting 2 A Clients a week – great job! Next question – what happens to the other 400? Chances are many of the B and C clients may not have seen or heard from you in months or even years.

What is the value of your remaining clients?

That is the million dollar question that most advisors can only guess at. The reason they can only guess is because the advisor might have sold a life policy to a client 10 years ago and haven’t spoken to them since!

As you all know in the last 10 years that life insurance client could have gotten married, had 3 kids and inherited his parent’s house. All life events you could have helped with!!! Unfortunately too many Financial Advisors won’t find out. Why? There is no plan in place for client communication, reviews or referrals to maximize the Financial Advisor’s Greatest Asset – their Book of Business!!!

Financial Advisors all know who their best clients are. What about clients who were a B last year and have developed into a potential A this year? What about the B who will always be a B but could be a great referral source?

The last thing you want to happen is to lose a client you thought was a C or B and your competitor found out they are actually an A! Ouch!